The Investment Company Institute's latest "Worldwide Regulated Open-Fund Assets and Flows, First Quarter 2020" release shows that money fund assets globally rose by $750.6 billion, or 10.8%, in Q1'20 to a record $7.688 trillion. The increase was driven by big gains in U.S. and China- based money funds.MMF assets worldwide have increased by $1.611 trillion, or 26.5%, the past 12 months, and money funds in the U.S. now represent 56.4% of worldwide assets. We review the latest Worldwide MMF totals, below. (Note: Let us know if you'd like to see our latest Money Fund Intelligence International product, which tracks "offshore" money market funds domiciled in Europe and outside the U.S.)
ICI's release says, "Worldwide regulated open-end fund assets decreased 12.6 percent to $47.95 trillion at the end of the first quarter of 2020, excluding funds of funds. Worldwide net sales to all funds was $691 billion in the first quarter, compared with $835 billion of net inflows in the fourth quarter of 2019. The Investment Company Institute compiles worldwide regulated open-end fund statistics on behalf of the International Investment Funds Association (IIFA), the international organization of national fund associations. The collection for the first quarter of 2020 contains statistics from 46 jurisdictions."
It explains, "Assets in regulated open-end funds reported in US dollars fell in the first quarter of 2020 in part because of US dollar appreciation. For example, on a US dollar–denominated basis, fund assets in Europe dropped 13.9 percent in the first quarter, compared with a decrease of 11.7 percent on a euro-denominated basis."
ICI's quarterly continues, "On a US dollar–denominated basis, equity fund assets dropped 21.7 percent to $19.20 trillion at the end of the first quarter of 2020. Bond fund assets decreased by 8.4 percent to $10.81 trillion in the first quarter. Balanced/mixed fund assets decreased by 14.5 percent to $5.85 trillion in the first quarter.... Money market fund assets rose 10.9 percent globally to $7.69 trillion."
The release also says, "At the end of the first quarter of 2020, 40 percent of worldwide regulated open-end fund assets were held in equity funds. The asset share of bond funds was 23 percent and the asset share of balanced/mixed funds was 12 percent. Money market fund assets represented 16 percent of the worldwide total."
ICI adds, "Net sales of regulated open-end funds worldwide were $691 billion in the first quarter of 2020. Flows out of equity funds worldwide were $19 billion in the first quarter, after experiencing $143 billion of net inflows in the fourth quarter of 2019. Globally, bond funds posted an outflow of $229 billion in the first quarter of 2020, after recording an inflow of $256 billion in the fourth quarter.... Money market funds worldwide experienced an inflow of $915 billion in the first quarter of 2020 after registering an inflow of $287 billion in the fourth quarter of 2019."
According to Crane Data's analysis of ICI's "Worldwide" fund data, the U.S. strengthened its position as the largest money fund market in Q1’20 with $4.337 trillion, or 56.4% of all global MMF assets. U.S. MMF assets increased by $705.4 billion (19.4%) in Q1'20 and increased by $1.300 trillion (42.8%) in the 12 months through Mar. 31, 2020. China remained in second place among countries overall. China saw assets increase $137.4 billion (13.4%) in Q1, to $1.160 trillion (15.1% of worldwide assets). Over the 12 months through Mar. 31, 2020, Chinese MMF assets have risen by $49.4 billion, or 4.4%.
Ireland remained third among country rankings, ending Q1 with $615.5 billion (8.0% of worldwide assets). Dublin-based MMFs were down $16.8B for the quarter, or -2.7%, and up $56.8B, or 10.2%, over the last 12 months. Luxembourg remained in fourth place with $408.0 billion (5.3% of worldwide assets). Assets there decreased $142 million, or -0.0%, in Q1, and were up $24.5 billion, or 6.4%, over one year. France was in fifth place with $329.5B, or 4.3% of the total, down $22.8 billion in Q1 (-6.5%) and down $44.2B (-11.8%) over 12 months.
Australia was listed in sixth place with $238.0 billion, or 3.1% of worldwide assets. Its MMFs decreased by $5.1 billion, or -2.1%, in Q1. Note that ICI's data includes this footnote for Australia: "Due to a reclassification, a portion of the assets from the 'other' category have been moved into the money market and real estate categories." Australia's MMF assets were mysteriously shifted into the "Other" category several years ago but reappeared several quarters ago. Japan was in seventh place with $110.3 billion (1.4%); assets there fell $5.9 billion (-5.1%) in Q1 and increased by $10.2 billion (10.1%) over 12 months.
Korea, the 8th ranked country, saw MMF assets increase $7.9 billion, or 8.6%, in Q1'20 to $99.2 billion (1.3% of the world's total MMF assets); they've risen $18.6 billion (23.1%) for the year. Brazil was in 9th place, assets decreased $8.3 billion, or -9.8%, to $76.2 billion (1.0% of total assets) in Q1. They've decreased $488 million (-0.6%) over the previous 12 months. ICI's statistics show Mexico in 10th place with $54.6B, or 0.7% of total assets, down $11.2B (-17.0%) in Q1 and down $4.0 (-6.8%) for the year. India was in 11th place, decreasing $17.8 billion, or -25.6%, to $51.8 billion (0.7% of total assets) in Q1 and decreasing $11.8 billion (-18.5%) over the previous 12 months.
Canada ($29.8, up $2.8B and up $8.1B over the quarter and year, respectively) ranked 12th ahead of the United Kingdom ($28.6B, down $33M and up $3.3B). Chinese Taipei ($28.6B, down $1.0B and up $3.1B) and Chili ($22.9B down $4.7B and up $1.6B), rank 13th through 15th, respectively. Switzerland, South Africa, Norway, Germany and Argentina round out the 20 largest countries with money market mutual funds.
ICI's quarterly series shows money fund assets in the Americas total $4.531 trillion, up $686.0 billion in Q1. Asian MMFs increased by $116.3 billion to $1.693 trillion, while Europe saw its money funds decrease by $47.5 billion in Q1'20 to $1.442 trillion. Africa saw its money funds decrease $4.2B to $20.9 billion.
Note that Ireland and Luxembourg's totals are primarily "offshore" money funds marketed to global multinationals, while most of the other countries in the survey have mainly domestic money fund offerings. Contact us if you'd like our latest "Largest Money Market Funds Markets Worldwide" spreadsheet, based on ICI's data.
